May
09

The Green Building Market Planting Seeds of Stability

May 09, 2012

The Green Home boom is planting itself as the future of home construction according to the National Association of Home Builders (NAHB).

Green HomeMcGraw-Hill Construction released its latest SmartMarket Report: New and Remodeled Green Homes: Transforming the Residential Market at the National Association of Home Builders’ (NAHB) National Green Building Conference and Expo. The report estimates that the green homes share of the construction market was 17 percent in 2011, equating to $17 billion, and expected to rise 29%-38%  by 2016, potentially a $87–114 billion opportunity, based on the five-year forecast for overall residential construction according to the NAHB.

The view that green homes are higher quality and save money are the two main factors propelling the market growth.

“In the current residential market, there is an enormous need to differentiate your homes for consumers,” says Harvey Bernstein, Vice President of Industry Insights and Alliances at McGraw-Hill Construction. “When builders are able to offer homes that not only are green, but also offer the combination of higher quality and better value, they have a major competitive edge over those building traditional homes.”

Accoring to the McGraw-Hill report, the green home building and remodeling market is gaining momentum due to:

• Higher quality for both new home builders and remodelers. For builders doing a high volume of green homes (at least 60% of the homes they build), its importance is magnified, with 90% who regard higher quality as an important trigger for building green, compared to 72% of builders overall.
• Customers are strongly value-driven—around two-thirds of builders and remodeler respondents state that customers request green homes or remodeling projects in order to lower their energy use or save money, more than twice any other factor.
• Higher first costs for building green are noted by a much lower percentage of builders as an obstacle now than they were reported in 2008.

Other findings included in the report are that indoor air quality has emerged as an important factor. The report states that 95% of high volume home builders include features that impact air quality, durability and better materials and that these are key reasons why green homes and remodeling projects are considered of higher quality. Also, more than 80% of builders and remodelers report that energy efficiency is making today’s homes greener compared to two years ago.

How important is eco-friendly amenities and green construction to our Chicagoland readers? Feel free to share your thoughts.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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